What are the arithmetic and geometric average returns for a stock with annual returns of 19%, 9%, -4%, and 13%? a. 11.11%; 8.91% b. 9.25%; 11.11% c. 11.11%; 9.25% d. 8.91%; 9.25% e. 9.25%; 8.91%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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Given answer general accounting question

What are the arithmetic and geometric average returns for a
stock with annual returns of 19%, 9%, -4%, and 13%?
a. 11.11%; 8.91%
b. 9.25%; 11.11%
c. 11.11%; 9.25%
d. 8.91%; 9.25%
e. 9.25%; 8.91%
Transcribed Image Text:What are the arithmetic and geometric average returns for a stock with annual returns of 19%, 9%, -4%, and 13%? a. 11.11%; 8.91% b. 9.25%; 11.11% c. 11.11%; 9.25% d. 8.91%; 9.25% e. 9.25%; 8.91%
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